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Question
A manufacturing company uses a job order cost accounting system. Overhead is applied using direct labor hours as an allocation base. Total costs for a particular job were $5,720. Of this amount $2,600 was direct labor and $1,040 was direct material. The company pays $26 per hour of direct labor and $2 per pound of direct materials. What is this companys overhead rate?
A. $26.00 per direct labor hour.
B. $20.80 per direct labor hour.
C. $ 4.00 per direct labor hour.
D. $80.00 per direct labor hour.
E. $2,080 per direct labor hour.
Answer
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Related questions
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Periods
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E. A processing further decision cannot be made from the available data.
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Q:
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Q:
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A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
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Q:
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B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.